Sterling Energy’s deepwater Bamboo 1 exploration well offshore Cameroon still has some way to go before completing, and will take up to 70 days to drill, according to the company’s chairman Alastair Beardsall.
In January this year Sterling, Murphy Oil and Société Nationale des Hydrocarbures – Cameroon’s national oil company – agreed to lift force majeure to allow exploration activities to recommence that month. Subsequently the Ocean Confidence rig started drilling Bamboo-1 on 9 February. The rig is operating in a water depth of 1,600 m (5,248 ft) and is now approaching the end of that 70-day drilling program. Results will be announced as soon as they become known, according to Beardsall.
Bamboo 1 is the first well to be drilled in the Ntem concession area, operated by Murphy.
Back in November 2011 Sterling completed a farmout deal giving Murphy 50% in the Ntem concession area, through Murphy Cameroon Ntem Oil Co. Ltd. Sterling retained 50% equity. Under the terms of the deal Murphy paid Sterling a contribution for previous license costs and will carry Sterling’s costs for the initial Bamboo well.
Force majeure was invoked in the Ntem concession in 2005 because of an overlapping maritime border claim involving Cameroon and Equatorial Guinea. In Sterling’s report, Beardsall says the border dispute remains unresolved, but noted that the Bamboo 1 location is outside the disputed border area.
The current exploration period recommenced on 22 January, with a minimum obligation for one exploration well.
Preliminary estimates suggests that the primary objective in the Bamboo 1 well could contain up to 422 MMbbl of oil on an unrisked gross prospective resources basis, and 170 Bcf of gas, amounting to 450 MMboe.
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